Applicants seeking a license to become a third-party administrator (TPA) to represent self-insured employers and/or insurance carriers must qualify under either §50(3-b) or §50(3-d) of the Workers' Compensation Law (WCL). Section 50(3-b) permits those businesses created under the laws of New York State to apply for a license. Businesses established outside of New York may apply for a license under §50(3-d) of the WCL provided they are: (1) an insurance company duly authorized to write workers' compensation insurance in New York; (2) an affiliate or subsidiary of (1); or (3) a licensed/authorized adjusting company in New York. The corporation must submit a certificate from the New York State Department of Financial Services indicating one of the three criteria listed above if they choose to file under §50(3-d) of the WCL. If the corporation files under §50(3-d) of the WCL, the corporation is required to have a physical place of business and telephone number in the State of New York and must also submit documentation from NYS Department of State, indicating that they are authorized to do business in New York State.
A company or corporation applying for a TPA license must have a Qualifying Officer to represent the company or corporation. This individual is responsible for overseeing the company's conduct at Board hearings and ensuring that the laws and regulations of the Board are being followed. An individual can become a Qualifying Officer in one of two ways.
It is important to note, however, that the Qualifying Officer must be designated as an "officer" of the company (i.e., President, Vice President, Secretary, or Treasurer) that is applying to represent self-insured employers and/or carriers. A resolution appointing the Qualifying Officer as an officer of the company must be submitted with the paperwork. The specific arrangements that are made between the company and the Qualifying Officer, with respect to official duties and compensation, if any, does not need to be disclosed to the Board.
Listed below are the forms that are required to be completed:
In addition to completing and submitting the above-mentioned forms, the Qualifying Officer will be required to appear before a Board Panel for an interview. Once the interview is complete, the Full Board will review the recommendation made by the Board Panel and determine if the license should be granted.
The completed forms should be submitted to the Workers' Compensation Board, Licensing Office, 328 State Street, Schenectady, NY 12305-2318. Please contact the Licensing Office at 1-800-664-2379 if you have any questions.